Page 46 - The Indian EYE 052022

BUSINESS EYE MAY 20, 2022 | The Indian Eye 46

Rising inflation, stalling growth:

How is China’s zero-covid strategy

complicating the problem

Global brokerage firm Morgan Stanley has lowered India’s gross domestic product (GDP)

growth forecast for the current financial year to 7.6 per cent

OUR BUREAU
Mumbai/Beijing

ndia’s retail inflation surged to
eight-year high of 7.79 per cent in
I April due to a sharp jump in fuel
and edible oil prices, the government
data showed on Thursday.
The headline inflation is the high-
est in eight years. Consumer Price In-
dex (CPI) inflation in April 2022 is the
highest since May 2014, when it stood
at 8.33 per cent. Retail inflation has
risen sharply. It stood at 6.95 per cent
in March 2022. April 2022 retail infla-
tion data is almost double from 4.23
per cent recorded in April 2021.
The price rise was sharper in ru-
ral India. Rural retail inflation rose to
8.38 per cent in April as compared to
7.66 per cent in the previous month
and 3.75 per cent in April 2021. Urban
retail inflation surged to 7.09 per cent
in April as compared to 6.12 per cent A sharp jump in fuel and food prices has led to a multi-year jump in inflation (ANI)
in March and 4.71 per cent in April
2021, according to data released by of loss in the benchmark Sensex. In- est shipping company, has suggest- the factories are finding it challeng-
the National Statistical Office (NSO), dusInd Bank tumbled 5.82 per cent to ed that the lockdown will severely ing to keep the momentum going due
Ministry of Statistics and Programme Rs 869.45. Tata Steel dipped 4.13 per impact truck services and transport to the high COVID curbs.
Implementation. cent to Rs 1118.15. Bajaj Finance fell costs would perceive a rise at an unex- Many companies are bearing
A sharp jump in fuel and food 3.76 per cent to Rs 5588. Bajaj Finserv pected level. It is said that 90% of the the brunt of China’s stern COVID
prices has led to a multi-year jump declined 3.53 per cent to Rs 12848.95. world’s goods are carried oversea. As policies. a lockdown is declared in
in inflation. Food inflation surged to State Bank of India plunged 2.93 freight charges increase it could cause Changchun city which is a major auto
8.38 per cent in April from 7.68 per per cent to Rs 462.45. HDFC Bank a negative economic spillover on manufacturing hub for brands like
cent in the previous month and 1.96 dipped 3.34 per cent to Rs 1303.10. global trade. Businesses will not toler- Toyota and Volkswagen. Apple sup-
per cent in April 2021. The index heavyweight Reliance ate this unfortunate development and plier Foxconn has also suspended its
Also, the Indian stock mar- Industries fell 1.99 per cent to Rs they will divert the cost on customers, production amidst the tightened re-
kets’ key indices, Sensex and Nifty, 2400.95. reported Inside Over. strictions, as per the media outlet.
slumped by more than two per cent Only one of the 30 scrips that are Due to heavy traffic restrictions In another ominous sign, Global
on Thursday dragged by heavy selling part of the Sensex closed in the pos- at the Shanghai port logistics compa- brokerage firm Morgan Stanley has
pressure in banking and metal stocks itive. Wipro rose 0.91 per cent to Rs nies have advised vessel operators to lowered India’s gross domestic prod-
as high US inflation data dampened 475.50. offload the products at other ports. uct (GDP) growth forecast for the cur-
investors’ confidence. Meanwhile, a report from the Ultimately customers have to rent financial year to 7.6 per cent citing
The 30 stock S&P BSE Sensex Chinese capital says that China’s infa- bear the additional shipment and high inflation and global slowdown.
tumbled 1158.08 points or 2.14 per mous Zero-COVID policy is not only storage charges. Thus, China is going The new growth projection is
cent to 52,930.31 points against its pre- harming the Chinese citizens but is through its worst outbreak and there- 0.30 per cent lower from the earlier
vious day’s close at 54,088.39 points. also posing a significant threat to the fore the increase in freight charges forecast.
Earlier, the Sensex started the trade world as the country’s ‘witless’ rules could create economic repercussions The brokerage firm has also low-
deep in the red at 53,608.35 points have left hundreds of cargo ships on global trade as well. ered India’s GDP growth forecast
and slumped to a low of 52,702.30 stranded on the ports which will im- If the delays continue for an un- for the financial year 2023-24 to 6.7
points in the intra-day. pact freight costs and global inflation. expected period, other ports may not per cent, which is 0.30 per cent lower
This is the fifth straight session Maersk, the world’s second-larg- be capable of filling the void. Some of from its earlier projection.

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